Xbox Game Pass to Total Revenue of Approximately $5.5 Billion in 2025effectively multiplying the revenue recorded in recent years: this is the estimate made by Piers Harding-Rolls, analyst at Ampere Analysis.
The reasons for this growth, according to Harding-Rolls, will be linked to the recent change in Microsoft’s strategies, which increased the price of Game Pass subscriptions and above all, he made sure that the Ultimate subscription became the reference one.
Since the costs of cloud gaming are significant, “Microsoft needs existing subscribers to pay moreand at the same time has to invest less in game licensing,” the analyst wrote in his report.
“The need to act was also determined by the confirmation that New Call of Duty Episodes Will Be Added to Game Pass Ultimate: since this is such a significant annual event, it was necessary to offset some of the costs of this move.”
“Microsoft is mitigating this impact by improving revenue per user through price increases, pushing subscribers towards the Ultimate level of Game Pass and limiting the stackability of Game Pass Console subscriptions to thirteen months.”
A winning strategy?
The players who want to access Game Pass to play the latest games will have to do so by upgrading to the Ultimate tier or, if possible, opting for PC Game Pass,” the analyst continued in his report, highlighting the crux of Microsoft’s strategy when it raised Game Pass prices.
“These initiatives should all contribute to significantly increase revenue per user in late 2024 and 2025. Ampere estimates that Game Pass global revenue across all tiers will grow 5.4% in 2024 and is expected to grow 15.3% in 2025.”
“Global consumer spending on Game Pass as a whole is expected to reach nearly $5.5 billion in 2025“, concluded Piers Harding-Rolls.
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